Question
B) Assume that Fillups fixed costs increase because of anew lease on its property and Fillup stays in business. will each of the following increase,
B) Assume that Fillups fixed costs increase because of anew lease on its property and Fillup stays in business. will each of the following increase, decrease, or remain unchanged at Fillups profit-maximizing quantity?
i) the deadweight loss. Explain
ii) fillups economic profit
C)Assume the demand for gasoline decreases because people bike to work more often.
i) what must be true for Fillup to continue to operate in the short run?
ii) what happens to fillups profit maximizing quantity and price in the short run assuming the firm continues to operate?
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